It's HD and $99, making it the second piece of cheap merchandise, after the iPod Shuffle, that Apple's ever peddled. Like the Shuffle's missing screen, it has the oddest limitations: it is HDMI+Optical only (with no converter on sale at launch), but it will only do 720p video. So if you want to watch Netflix or purchased video on an SDTV, or in full HD (after the forthcoming 1080p update), you'll still want to get a Roku.
At least some of the content is apparently going to be protected by HDCP, which indicates that any converter, third party or not, would not work, at least for all content.
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